According to a report by Moneycontrol, global information technology (IT) firm Wipro Ltd. (WIT) plans to invest $1 billion in cloud technologies, acquisitions, capabilities and partnerships over the next three years.
On July 20, the company announced the launch of Wipro FullStride Cloud Services to meet the cloud needs of its clients. India-based Wipro offers business process, consulting and IT services. (See Wipro stock chart on TipRanks)
Wipro’s Global Business Lines and Chief Growth Office collaborated to create FullStride Cloud Services, which provide a comprehensive and integrated cloud transformation capability to cloud experts, partners and customers.
The capability will allow the company’s clients to create significant business value, align IT and business with the cloud imperative, optimize technology investments and increase competitive differentiation.
The company said, “This commitment builds on Wipro’s existing and extensive cloud business with clients and significantly expands the investment with its partners and hyperscalers, creating industry solutions that accelerate results for mutual clients.”
Two months ago, Bernstein analyst Rahul Malhotra upgraded the rating on the stock to Hold from Sell but maintained a price target of $6.23 (24.5% downside potential). In a research note to investors, the analyst said, “The company’s turnaround plan is progressing well with new mega-deals signed and improvement in execution.”
Overall, the stock has a Moderate Sell consensus rating based on 1 Hold and 2 Sells. The average Wipro price target of $7.10 implies 13.5% downside potential. The company’s shares have gained 109.4% over the past year.